Financial Data and Key Metrics Changes - Revenue increased by 16% to 117.5million,markingtheeighthconsecutivequarterofdouble−digitrevenuegrowth[23][30]−AdjustedEBITDAgrewby5610.6 million, with an adjusted EBITDA margin rising to 9% from 7% in the prior year [30][32] - Net income was 1.9millionor0.06 per diluted share, while adjusted net income was 3.5millionor0.11 per diluted share [31][32] Business Line Data and Key Metrics Changes - Student starts at 21 campuses grew by 20% over the prior period, continuing a trend of double-digit growth for six consecutive quarters [9][30] - Transportation and Skilled Trades programs saw a robust 32.4% increase in stock growth, while healthcare and other professions experienced a decline of 6.3% due to program optimizations [24][25] Market Data and Key Metrics Changes - The company is successfully meeting the growing demand for educational alternatives to traditional four-year colleges, with a focus on closing the workforce skills gap [10][19] - The East Point campus in Atlanta opened in March 2024 and contributed over 4millioninrevenueduringQ12025,becomingprofitableaheadofschedule[10][100]CompanyStrategyandDevelopmentDirection−Thecompanyisfocusedonexpandingitsnetworkofschoolsbyreplicatingin−demandprogramsandopeningnewcampusesinunderservedmarkets[16][19]−TheLincolntenpointzerohybridteachingmodelhasprovidedincreasedflexibilityforstudents,contributingtohighergraduationratesandattractingcorporatepartners[8][10]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedconfidenceinachievingapproximately550 million in organically generated revenue and 90millioninadjustedEBITDAby2027[7][32]−Thecompanyanticipatescontinuedstrongdemandforskilledtradestraining,drivenbyinitiativesinmanufacturing,electricalutilities,andmilitaryneeds[17][19]OtherImportantInformation−Capitalexpendituresfor2025areexpectedtorangebetween70 million and 75million,supportingnewcampusesandprogramexpansions[27][35]−Thecompanyhasamendeditscreditfacilitytoincreasefinancialflexibility,endingthequarterwithapproximately90 million in total liquidity and no debt outstanding [27][28] Q&A Session Summary Question: Can you provide additional color on the strong demand and increased marketing efficiencies? - Management noted that improved marketing efficiencies were due to vendor collaboration and increased awareness, leading to lower overall costs [38][39] Question: What is the update on regulatory changes and their impact? - Management indicated that the administration is supportive of trade education, and while there are changes at the Department of Education, they maintain strong contacts to ensure timely approvals [46][47] Question: Are all new programs approved by the Department of Education? - Management confirmed that all new programs are approved except for the welding program in Rhode Island, which is pending [52] Question: How much of the healthcare start contraction is due to specific program suspensions? - Management stated that outside of the suspended programs, healthcare starts grew by approximately 6% [61] Question: What is the expected cadence of capital expenditures throughout the year? - Management indicated that Q2 is expected to be one of the heaviest quarters for capital expenditures, slightly exceeding Q1 [96]
